Car Loan EMI Calculator & Comparison
Compare car loan interest rates from SBI, HDFC, ICICI, Axis Bank & more. Find the actual cost of your dream car including down payment and interest.
New Car Rates
8.65% - 9.10%
p.a. starting from
Used Car Rates
10.65% - 11.60%
p.a. starting from
Max Tenure
7 Years
for new cars
Processing Fee
₹0 - ₹5,000
varies by bank
Car Details
Used car loans typically have maximum 5 years tenure
Loan Tips
- • Higher down payment = Lower EMI & less interest
- • Shorter tenure = Less total interest paid
- • Compare rates from multiple banks before applying
- • New cars get 0.5-1% lower rates than used cars
Loan Summary (Based on Best Offer)
Loan Amount
₹8,00,000
Total Interest
₹1,89,000
Monthly EMI
₹16,483
Total Cost
₹11,89,000
Compare Bank Offers
Showing lowest EMI first - Updated for March 2026
Car Loan EMI Formula
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
Where: P = Loan Amount, R = Monthly Interest Rate, N = Number of Months
Example Calculation
For a ₹10 Lakh car with 20% down payment (₹2 Lakh loan amount ₹8 Lakh) at 8.65% for 5 years:
EMI = ₹16,483/month
Total Interest = ₹1,89,000
Total Cost = ₹11,89,000
Tips to Reduce EMI
- • Make a larger down payment
- • Choose a longer tenure
- • Improve CIBIL score for better rates
- • Compare offers from multiple banks
❓ Frequently Asked Questions About Car Loans
What is the minimum down payment for a car loan?
Most banks require 15-20% down payment for new cars and 25-30% for used cars. Some lenders offer zero down payment for select models, but this increases the loan amount and interest burden.
What is the maximum loan tenure for car loans?
For new cars, maximum tenure is typically 7 years. For used cars, it's usually 5 years. Longer tenure means lower EMI but higher total interest.
What factors affect car loan interest rates?
Key factors: CIBIL score (750+ gets best rates), loan amount, down payment, car model (new vs used), tenure, and bank policies. Women borrowers often get 0.05-0.1% lower rates.
Can I prepay my car loan?
Yes, most banks allow prepayment. For floating rate loans, no prepayment charges. For fixed rate loans, some banks charge 2-4% of the principal prepaid. Always check prepayment terms before taking the loan.
What documents are needed for a car loan?
Common documents: PAN card, Aadhaar, proof of income (salary slips for salaried, ITR for self-employed), bank statements (last 6 months), address proof, and car quotation from dealer.